- Price action in NZD/CAD has shown a decisive breakout above daily Ichi cloud.
- The pair has also taken out 100-DMA resistance at 0.8935, which is now strong support.
- We evidence a potential 'Bearish Shark' pattern in the formation.
- Momentum studies are bullish, we see scope for test of 200-DMA at 0.9184. Violation at 200-DMA could see further upside.
- Attention turns towards the Canadian CPI and retail sales release for further impetus.
- Traders also watch out for New Zealand GlobalDairyTrade price auction and Q3 GDP data due this week.
Support levels - 0.8974 (5-DMA), 0.8935 (100-DMA), 0.8888 (1H 200-SMA)
Resistance levels - 0.9084 (Sept 20 high), 0.9113 (Aug 29 high), 0.9184 (200-DMA)
Recommendation: Good to go long on dips around 0.90/0.9010, SL: 0.8935, TP: 0.9084/ 0.9120/ 0.9180
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 33.6456 (Neutral), while Hourly CAD Spot Index was at -117.254 (Bearish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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